Hawker Beechcraft Inc. said Friday that its key creditors have approved its reorganization plan for emerging from Chapter 11 bankruptcy.
The Wichita, Kan.-based company, which has operations in Little Rock, will seek court approval Thursday to exit bankruptcy and said it plans to emerge from Chapter 11 in the second half of February.
In addition, JPMorgan Chase Bank and Credit Suisse AG have promised to underwrite $600 million in exit financing, consisting of a term loan and a revolving line of credit, the company said. The financing is subject to bankruptcy court approval and other conditions, the aviation firm said.
"The tremendous show of support of our creditors for the Plan, which will dramatically reduce Hawker Beechcraft's debt load, and the financing commitment from JPMorgan and Credit Suisse mark an important milestone for the company as it moves closer to emerging from the restructuring process," said Hawker Chief Executive Officer Robert “Steve” Miller.
A new board of directors, whom the company’s new owners will appoint, will take over upon emergence from bankruptcy, Hawker said.
In Little Rock, the Bill and Hillary Clinton National Airport’s executive director, Ron Mathieu, has been been authorized to amend its lease with Hawker after the company emerges from bankruptcy. The airport stands to lose nearly $600,000 in income when Hawker emerges from bankruptcy without its Hawker jet division, which leased five hangars and 45.7 acres at the airport, the Arkansas Democrat-Gazette has reported.